Wine industry eyes heady growth if it can get grapes

After years of grape gluts, growers welcomed rising demand and prices amid short crops.
While per capita consumption — still low — is rising, the wine business can anticipate heady growth ahead, if it can get the grapes.

Jan 31, 2012

From the Napa Valley Register:

When the wine industry gathered Tuesday for the annual Unified Wine and Grape Symposium, the atmosphere was decidedly upbeat.

After years of grape gluts, growers welcomed rising demand and prices amid short crops. Wineries are also looking at stronger markets as the economy rebounds and the ocean of surplus wine dries up.

Jon Fredrikson, of market research firm Gomberg, Fredrikson & Associates, noted that the U.S. became the world’s largest wine consumer last year. While per capita consumption — still low — is rising, the wine business can anticipate heady growth ahead, if it can get the grapes.

Fredrikson said U.S. wine shipments were 345 million cases in 2011, up 4.5 percent over 2011. Of that, 210 million cases came from California (89 percent of U.S. production), 26 million from other states (11 percent of U.S. production) and 110 million cases were imports.

In total, imports represented 32 percent of wine shipped to customers in the U.S. in 2011.